MILAN, April 17 (Reuters) - Italian cashmere brand Loro Piana, part of French luxury group LVMH, said on Friday that an Italian court had lifted early the judicial administration forced on the company over alleged labour abuse in its supply chain.
Loro Piana was subjected last July to court monitoring for 12 months after investigators found that part of the company's production had been indirectly subcontracted to Chinese-owned firms accused of exploiting workers.
The cashmere group was one of several Italian luxury brands embroiled in labour malpractice investigations, including Dior, Valentino and Giorgio Armani, tainting the reputation of the "Made in Italy" fashion industry.
On Friday, Loro Piana said it had carried out 2,400 audits across its supplier network since 2024, and had cut ties with more than 100 suppliers and sub-suppliers that failed to meet the company's "zero-tolerance" standards.
During the judicial monitoring period, Loro Piana said it strengthened supplier oversight procedures, including through greater use of independent external auditors and more frequent on-site inspections.
"The steps we have taken in recent months reflect a rigorous and disciplined approach to strengthening governance and oversight across our value chain," Loro Piana CEO Frederic Arnault said. Arnault, the son of LVMH chairman and Chief Executive Bernard Arnault, was appointed CEO of the cashmere group in June last year.
(Reporting by Elisa Anzolin, editing by Gavin Jones, Alvise Armellini and Susan Fenton)
LVMH Moët Hennessy Louis Vuitton SE is the world leader in luxury products. Net sales break down by family of products as follows:
- fashion and leather items (46.7%): brands such as Louis Vuitton, Christian Dior, Celine, Loewe, Kenzo, Givenchy, Fendi, Emilio Pucci, Marc Jacobs, Berluti, Loro Piana, etc.;
- watches and jewels (13%): Bulgari, TAG Heuer, Zenith, Hublot, Chaumet, Fred brands, Tiffany, etc.;
- perfumes and cosmetics products (10.1%): perfumes (Christian Dior, Guerlain, Loewe, Kenzo, Givenchy brands, etc.), makeup products (Make Up For Ever, Guerlain, Acqua di Parma, etc.), etc.;
- wines and spirits (6.6%): champagnes (Moët & Chandon, Dom Pérignon, Veuve Clicquot, Krug, Ruinart, Mercier, Château d'Yquem, Domaine du Clos des Lambrays, Château Cheval Blanc, Colgin Cellars, Hennessy, Glenmorangie, Ardbeg, Belvedere, Woodinville, Volcán de mi Tierra, Chandon, Cloudy Bay, Terrazas de los Andes brands, etc.; No. 1 worldwide), wines (Cape Mentelle, Château D'Yquem, etc.), cognacs (mainly Hennessy; No. 1 worldwide), whisky (mainly Glenmorangie), etc.;
The remaining net sales (23.6%) are from selective distribution through the Sephora, DFS, Miami Cruiseline chains and Le Bon Marché and La Samaritaine department stores.
At the end of 2025, products are marketed via a network of 6,283 outlets located throughout the world.
Net sales are distributed geographically as follows: France (8.3%), Europe (18%), Japan (7.9%), Asia (26.5%), the United States (25.6%) and other (13.7%).
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